Quarterly report [Sections 13 or 15(d)]

Note 9 - Goodwill

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Note 9 - Goodwill
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Goodwill Disclosure [Text Block]

NOTE 9 – GOODWILL

 

As of  September 30, 2025, changes in the carrying amount of goodwill during the period presented were as follows:

 

   

(in thousands)

  

Balance as of December 31, 2024

   $ 17,116  

Acquisitions

     13,253  

Balance as of September 30, 2025

   $ 30,369  

 

Goodwill is assigned to the reporting unit, which is the operating segment level or one level below the operating segment. The Company conducts its annual goodwill impairment assessment on November 1, and between annual tests if the Company becomes aware of an event or a change in circumstances that would indicate the carrying value may be impaired. For the purpose of the goodwill impairment assessment, the Company has the option to perform a qualitative assessment (commonly referred to as “step zero”) to determine whether further quantitative analysis for impairment of goodwill or indefinite-lived intangible assets is necessary (“step one”). As of September 30, 2025, the retail reporting unit had a negative carrying amount of which all of goodwill is allocated to the reporting unit and accordingly, no impairment was recognized. The balance of goodwill at  September 30, 2025 and  December 31, 2024 was $30.37 million and $17.12 million, respectively.

 

Goodwill acquired from EWCR and GDR is expected to primarily reflect anticipated synergies from combining operations, expansion of the Company’s retail footprint in Northern California, the value of the assembled workforce acquired, and other intangible benefits that do not qualify for separate recognition. Refer to "Note 10 – Business Combinations" for goodwill acquired during the nine months ended September 30, 2025.